It's basically because of the global "resources crunch". Oil prices now exceed $130 per barrel due to high production and transportation costs and the benefits of Barack Obama lifting the oil drilling moratorium still to be generated. Rapidly rising demand particularly in economic growth areas such as China and India, who are buying as much oil on the global market has also contributed. Food prices have similar underlying causes with global food supplies being hit by drought in Australia, a poor crop in Canada and overly aggressive biofuels policies in Europe and the US. Around 5% of global cereal crops now feed cars instead of people. While markets in Asia have experienced rapid demand and population growths which is outstripping food production.
